'Old Faithful,' AT&T, still holds allure; bulls buying hope of global growth

Article Abstract:

AT&T targets the world market, and some investors are taking the dream seriously. One New York money manager, who recently bought $36 million of AT&T shares at $38.25 per share, hopes that AT&T will rise to $60 a share during the next two years. Some investors are troubled by AT&T's recent $7.5 billion acquisition of NCR Corp, the computer company, because the computer industry has done poorly lately. Nevertheless, AT&T is progressing in sales of equipment overseas and in long-distance revenues, and the company now seems to be doing well against competitors such as MCI Corp. If there is a change for the better in the overall economic situation and if AT&T does well in computers, some observers foresee a 13 percent annual growth rate.

T, Column, American Telephone and Telegraph Co., International markets, Industry Analysis, Outlook, Utilities, Long-Distance Telephone Service, World Market

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McCaw's '80s-style debt is a drag in '90s

Article Abstract:

McCaw Cellular Communications may be in financial trouble as it enters the first recession to hit the cellular industry saddled with an enormous debt load. McCaw has a total debt of more than $4 billion, with an annual interest rate payment of $390 million. Most analysts do not expect McCaw to have enough cash flow to make its interest payments until 1992 or 1993. The firm has also seen its stock price fall from a high of $47 per share in 1989 to $27.75 in July 1990 to $17.75 in August 1990. McCaw proponents point out that the firm has a strong management team, and the firm continues to grow at a pace that will see it double in size in the next few years.

Radiotelephone communications, Cellular telephone equipment industry, Debt, AT&T Wireless Services Inc., Financial Analysis Software, Company Profile, MCWA

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Telmex investors place their long-distance bets

Article Abstract:

Telefonos de Mexico (Telmex), which has 10.6 billion shares outstanding, sold 1.5 billion shares in the week of May 13, 1991. According to an industry observer, Stephen Dexter of Kemper Financial Services, Telmex is 'a professionally managed company with strong government support,' and investors apparently agree that the company is a good bet over the long term. Telmex's offering was the first such global sale by a Mexican company, but it will probably not be the last. The sale puts much foreign money at the disposal of the Mexican government, and there was $91.5 million in fees for Wall Street investment bankers as well.

Stock-exchange, Stock exchanges, Statistics, Mexico, Telefonos de Mexico S.A. de C.V., column, Public Offerings

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